Jun. 12, 2014
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CEO Elon Musk says anyone can now use Tesla's technology. / USA TODAY

by Chris Woodyard, USA TODAY

by Chris Woodyard, USA TODAY

Tesla Motors CEO Elon Musk announced Thursday that the company is taking the unusual step of an "open source" approach for its technology, suspending enforcement of its patents to encourage development of electric cars.

Tesla, considered a leader in development of long-range electric cars, has about 200 patents and none are being held back, Musk says.

"Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology," he wrote in a blog post.

While it is not considered radical in the technology world to freely share patents, it's unusual, says Carter Driscoll, senior analyst from boutique investment bank MLV & Co.

The move also comes as Tesla plans to open one of the country's largest plants for making lithium-ion batteries and likely is searching for other customers in addition to its own needs to create volume to lower costs of the cells. Signing up other customers is "creating a market for the Gigafactory," Driscoll says.

Musk says he is making the move out of frustration that more automakers haven't developed long-range electric cars. Most current EVs have ranges per charge of about 100 miles, less than half the longest-range Tesla Model S. He said in a conference call that by now, seven years since Tesla marketed its first electric roadster, he expected electric cars to be farther along.

He says that when he proposed the open-source idea, he got some "wide-eyed looks" from some board members and managers. But he downplayed the risk of the move, saying that quick-moving companies usually stay ahead of their own patents. Attracting top talent matters more.

"Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor, but rather by the ability of a company to attract and motivate the world's most talented engineers," he wrote. "We believe that applying the open source philosophy to our patents will strengthen, rather than diminish, Tesla's position in this regard."

Besides the cars, Tesla is developing a network of high-speed chargers. Opening patents might help create more of a market for their use as well.